The Deposit Protection Corporation (DPC) said on Wednesday it has surpassed its target of being able to provide cover and refund over 90 percent of Zimbabwean bank depositors in the event the banking system collapses.

Previously, the institution, whose main role is to protect depositors in the event of bank closures, was able to cover about 88.5 percent of the total bank depositors in the country, 1.5 percentage points below the target of 90 percent.

A hike of the refundable amount that can be paid to a single, small depositor from $500 to $1 000 approved by the government last year allowed the DPC to widen its cover to 92.98 percent of total bank depositors.

Before the review of the cover limit in June last year, the DPC was covering 88.5 percent of depositors.

At the current cover of US$1 000, about 92.98 percent, which represents about 1.5 million depositors are covered in full, in line with the public policy objective of covering at least 90 percent of insured depositors, the DPC said in an update on its operations.

Depositors with more than $1 000 in their accounts at the closure of a bank, will only be able to get a full refund after completion of the liquidation process, provided sufficient funds have been mobilised to meet the requirements.

Since its establishment in 2003, the DPC has compensated depositors belonging to over eight failed banks, among them AfrAsia, Allied, Trust and Royal.

The DPC survives on funding from contributions by member institutions which pay a prescribed annual rate of 0.2 percent of average eligible deposits, with premiums paid on a quarterly basis.

Membership of the DPC includes all commercial banks, merchant banks, building societies, discount houses, finance houses and deposit-taking micro-finance institutions.

The DPC has also earned fees from firm's going through liquidation or judicial management which are under its charge.

It has to date managed to compensate the bulk of the small depositors who went through the necessary processes after the collapse of some financial institutions.